YONKERS, NY — With national average fuel prices approaching $4 a gallon, many consumers are clamoring to trade in their current vehicles for smaller, more fuel-efficient ones. But a new study from Consumer Reports warns drivers that downsizing too soon can cost them more in other owner costs than they’ll save at the pump.

Consumer Reports has always encouraged drivers to buy more fuel-efficient vehicles. But if the timing isn’t right, it can cost you more in the long run. An analysis of CR’s exclusive owner-cost data found that it often doesn’t pay to downsize if you’ve only owned your vehicle for three years or less and haven’t paid off the loan, even if the new car’s fuel economy is much better. Consumer Reports’ experts say consumers should typically hold on to their cars at least four or five years to minimize the financial impact of depreciation and finance charges. Owner cost data includes depreciation, fuel usage, interest on financing, insurance, maintenance and repair, and sales tax. A complete analysis and sample trade-in comparisons are available free at www.ConsumerReports.org.

According to Consumer Reports’ calculations, depreciation makes up about 48 percent of an average owner’s total vehicle costs in the first five years of ownership. Fuel, however, averages only about 21 percent of total costs. Because the greatest depreciation occurs in the first three years, your car costs you less to own overall in the following years. So for a typical, payment-making owner with a 60-month loan, trading in a three-year-old vehicle means you’ve just taken the biggest depreciation hit on your current car and still have a lot of the loan principle yet to pay off. What you’ll save in depreciation costs by holding onto the vehicle for another year or two will net you more money in the long run than you’d save in gasoline with the new car.

“These hidden costs may be the factors you are least likely to focus on when downsizing,” said Rik Paul, automotive editor, Consumer Reports. “After all, depreciation and interest are less tangible costs than the high price for a gallon of gas that slaps drivers in the face with each fill up.”

For example, a 2005 Ford Five Hundred SEL V6 sedan got 21 mpg overall in Consumer Reports’ testing. The 2008 Toyota Prius got 44. Assuming 12,000 miles per year at the current national average for gasoline of $3.75 per gallon, the Ford will cost about $2,000 in gas this year, while the Toyota will cost just $1,000. But factoring in all of the owner costs of trading in the Five Hundred now, the Toyota will cost about $9,000 to own for the first 12 months, while the Ford costs $6,000. That’s a difference of $3,000, or $0.23 per mile.

“Based on today’s numbers, it’s less expensive to tough out another year or two with a gas guzzler than trade-in too early,” Paul said. “However, if gas prices rise past $5 a gallon, large vehicles may see their depreciation accelerate and owners could face new challenges in selling their old model.”

Consumer Reports continues to advise shoppers to buy the highest-rated, most reliable, and safest model with good fuel economy that suits their needs. When it comes time to buy a new model, there are considerable savings and advantages to downsizing, but consumers should understand the full financial impact of the timing for their decision.

Jeff Bartlett, deputy automotive editor, ConsumerReports.org, adds, “While we support the downsizing trend in principle, we caution consumers to look at their long-term owner costs and not rush to make a change they may later regret.”

2009 Volkswagen Touareg

Having undergone a minor facelift for 2008, VW’s largest, heaviest and most expensive vehicle soldiers on with few changes. Last year’s changes included a new front fascia that includes the signature corporate grille, new rear spoiler and reworked side mirrors. Mechanical changes included a new 3.6 liter V-6 with an additional 40 hp and 36 lb-ft. of torque.

As with all big SUV’s, Touareg sales are down almost 12% for the first 4 months of this year, although April sales showed an increase of almost 260 units over last year. Clearly, an EPA estimated 14 city/19 highway MPG will continue to affect sales – especially with gas clearing the $4 per gallon hurdle.

2009 Volkswagen Eos

Named after the Greek goddess of the dawn, the Eos is probably one of the most entertaining convertibles available in the US, no matter what time of day it happens to be. Not only does the Eos come with a retractable automatic folding hardtop roof, that roof contains a power glass sunroof and built-in sunshade. This means the Eos driver can enjoy a totally-enclosed coupe, top-up sunroof open driving or total top-down full-convertible mode.

When we said the Eos was fun, we meant it. Standard equipment includes a 2.0 liter direct-injected, turbocharged 200 hp engine. A 6-speed manual transmission is standard, while the optional automatic transmission is a 6-speed DSG. Other standard features include 4-wheel disc brakes, front side-curtain airbags, rear roll-over protection system, ASR anti-slip and ESP electronic stabilization.

2009 Volkswagen Rabbit

While the fuel economy of the Rabbit is a bit below most vehicles in its class, it still did well enough to be the top-rated vehicle in its class by Consumer Reports magazine. Volkswagen continues to build the Rabbit in Wolfsburg, Germany, and the quality of materials as well as the fit and finish reflect this heritage. A 5 cylinder 170 hp engine is the only choice and it accelerates the Rabbit from a standstill to 60 mph in 8.5 seconds. Transmission choices include a 5-speed manual as well as an optional 6-speed automatic. For 2009, ESP stability control will be standard equipment on all Rabbits.